2 cheap ASX shares to buy right now

Telstra Corporation Ltd (ASX:TLS) and this ASX share could be cheap. Here's what you need to know…

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Although the Australian share market has recovered strongly in recent weeks and is close to moving into positive territory for the year, not all shares on the index have performed as positively.

Two ASX shares which are still trading materially lower than their 52-week highs are listed below. Are these beaten down shares in the buy zone?

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. It is best known for its Sonata wealth management platform. This wealth management platform allows financial advisers to connect and engage with clients via computers, tablets, or smartphones. It is used by a number of large financial institutions.

The Bravura share price has come under pressure this year due to the negative impact of the pandemic on its performance and is down 45% from its 52-week high. Though, it is worth noting that the impact isn't as great as its share price decline might indicate. Management has warned that its profits could be flat this year because of the crisis.

According to a note out of Goldman Sachs, its analysts think this is a buying opportunity. It recently reiterated its buy rating and put a $4.50 price target on its shares. It believes the company is well positioned due to its strong market position with its existing product offerings and its emerging microservices ecosystem strategy.

Telstra Corporation Ltd (ASX: TLS)

Although this telco giant's shares have been strong performers this month, they are still some distance from their highs. On Monday, the Telstra share price ended the day at $3.08, which was 22% lower than its 52-week high.

This weakness has been driven by COVID-19 headwinds and concerns over the sustainability of its dividend. However, the latter concerns are now easing after the Telstra board revealed that it would do whatever it can to maintain its 16 cents per share dividend.

In addition to this, the company has recently announced plans to split its business into three separate entities. Management believes the restructure will allow Telstra to take advantage of potential monetisation opportunities for its infrastructure assets, which could create additional value for shareholders.

Goldman Sachs was a fan of this plan and reiterated its buy rating and $3.60 price target on the company's shares. It has also reaffirmed its forecast for a 16 cents per share fully franked dividend in FY 2021 and beyond.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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